Algoma Incorporated has a capital structure which is based on 25 % debt, 15 % preferred stock, and 60 % common stock. The after-tax cost of debt is 7 %, the cost of preferred is 8 %, and the cost of common stock is 10%. The company is considering a project that is equally as risky as the overall firm. This project has initial costs of $140,000 and cash inflows of $90,000 a year for two years. What is the projected net present value of this project?

$18,538.69

$18,427.44

$19.197.36

$19,074.82

$17,571.58